RPC (NYSE: RES) and Targa Pipeline Partners (NYSE:APL) are both mid-cap oil related services and equipment – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares RPC and Targa Pipeline Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RPC 6.03% 10.31% 7.95%
Targa Pipeline Partners 14.09% 17.87% 9.56%

Insider and Institutional Ownership

38.1% of RPC shares are owned by institutional investors. 73.5% of RPC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares RPC and Targa Pipeline Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
RPC $728.97 million 7.58 -$141.24 million $0.38 67.11
Targa Pipeline Partners N/A N/A N/A $0.89 30.02

Targa Pipeline Partners has higher revenue, but lower earnings than RPC. Targa Pipeline Partners is trading at a lower price-to-earnings ratio than RPC, indicating that it is currently the more affordable of the two stocks.

Dividends

RPC pays an annual dividend of $0.11 per share and has a dividend yield of 0.4%. Targa Pipeline Partners does not pay a dividend. RPC pays out 28.9% of its earnings in the form of a dividend. RPC has increased its dividend for 7 consecutive years and Targa Pipeline Partners has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a summary of current recommendations for RPC and Targa Pipeline Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RPC 0 13 8 0 2.38
Targa Pipeline Partners 0 0 0 0 N/A

RPC currently has a consensus target price of $23.58, suggesting a potential downside of 7.52%. Given RPC’s higher probable upside, analysts clearly believe RPC is more favorable than Targa Pipeline Partners.

Summary

RPC beats Targa Pipeline Partners on 7 of the 12 factors compared between the two stocks.

About RPC

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company’s segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers’ use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

About Targa Pipeline Partners

Targa Pipeline Partners, L.P. (the Partnership), formerly Atlas Pipeline Partners, L.P., was formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets. The Partnership is a provider of midstream natural gas, natural gas liquids (NGL), terminaling and crude oil gathering services in the United States. The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas; storing, fractionating, treating, transporting and selling NGLs and NGL products; gathering, storing and terminaling crude oil; and storing, terminaling and selling refined petroleum products.

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